Montana Pension Funds Show $1.4B Funding
Shortfall

October 13, 2005 (PLANSPONSOR.com) - The state of
Montana's public pension funds for teachers and other state
and local government employees now have a combined
$1.4-billion funding shortfall, according to new actuarial
reports.

The report by Milliman Consultants and
Actuaries shows that the state’s Teachers’ Retirement
System has a funding shortfall of $903.3 as of June 30, up
19.2% from a year earlier, according to a news report in
the Helena Independent Record. Meanwhile, the Public
Employee Retirement System’s potential shortfall rose to
$522.6 million on June 30, an increase of 15.3% over last
year, the actuaries found.

Governor Brian Schweitzer already has committed to spend
$125 million of the one-time money in the state’s general
fund surplus to help address the problems (See
Montana Governor
Promises to Help Public Pension Systems
), his budget director, David Ewer told the newspaper.
“We’re committed to addressing this at the special
session,” Ewer told the newspaper. “It’s one of the
administration’s highest priorities.”

David Senn, executive director of the Teachers
Retirement System, said the increased potential shortfall
comes as no surprise. According to the Independent Record
report, the fund still suffers from “abnormal” drops in its
assets in the stock market, where its funds are invested by
the Board of Investments.

Mike O’Connor, executive director of the state’s Public
Employee Retirement Administration, said his agency also is
working with the governor to help address the potential
deficits in three of the eight pension funds it
oversees.